The Tax System vs. a Society Based on the Division of Labor

DIY vs. Hiring Professionals? A case study illustrating the challenges of the new (just over a century old) income tax system.

When developing products, we estimate the amount of work involved, and the question immediately arises: How suitable is this for DIY? Can we offer everything as a DIY project? Can we at least offer part of it as a DIY project? The theory of a society based on the division of labor: a specialist can complete this work in significantly less time. The reality of a society based on the division of labor: doing the work yourself is significantly more efficient than paying a professional by working overtime in your own job. Who can still work paid overtime in their job these days? A significant portion of the entire tax system is based on taxes and levies on human labor. This erects a wall between people who want to buy and sell labor. The first idea to change this was the CO2 tax. But here, the tax base falls away. Zero CO2 emissions would also mean zero tax revenue from CO2 taxation. My 2024 simulation of off-grid fast-charging communities was calculated entirely without a CO2 tax. Energy costs for mobility and transportation are cut in half through locally generated solar power, converted to 24-hour electricity using batteries and 24×365 electricity using power-to-methanol and a generator. The assumed prices are realistic for 2030 through 2035. The same applies to the settlement, which supplies a purely electrically powered cement plant. That's how quickly solar energy went from needing "enormous subsidies" to being able to compete with fossil fuels without any subsidies at all. Regarding the issue that when implementing a CO2 tax, one must also know how to phase it out, I wrote on April 14, 2019: However, this means that if you implement a CO2 tax, you must already know how to cope with a significant decline in the tax base. 180 EUR per metric ton of CO2 multiplied by 905 million metric tons of CO2 equivalent equals 162.9 billion EUR. But 500 million metric tons times 300 EUR is only 150 billion EUR
But 200 million metric tons times 400 EUR is only 80 billion EUR
But 100 million metric tons times 500 EUR is only 50 billion EUR And in the end, the only thing left to tax is the gasoline at a classic car event.

The Earth's surface cannot be enlarged

What other type of taxation might there be? In 2021, a video about the 1,000 m² Society was released: 10 billion people need 10 million km², and the rest is nature. The short version was 1 € per square meter per year. It’s perfectly clear that this doesn’t work with today’s agricultural practices. A €10,000 tax per hectare per year on a €1,000 profit just isn’t feasible. On the other hand, €600 for a single-family home on a 600 m² lot is very affordable. This makes it clear that it won’t work without adjustment factors. From Land für Energie, the lease is provided as a supply of 24-Strom. Let’s assume a rate of 30 kWh/m²/year. Then, 27,000 km² of land for buildings would yield 810 TWh/year of electricity. That would then be a general baseline. Anyone who supplies too little electricity pays 30 cents/kWh/year.

What needs to be financed?

As already mentioned in the 2025 newsletter Subsidy Madness Leading to National Bankruptcy: under no circumstances should there be absurd subsidies that result in absurd prices. Before the invention of income tax, the public-sector share of the economy was very small. In the Roman Empire, it was 5 to 7% of GDP. Soldiers’ pensions consisted of a small plot of land for self-sufficiency. While wealthy families enjoyed all sorts of luxuries, the middle class was not bled dry. How much money does a family need to live on if it owns a GEMINI next-generation house and a greenhouse that produces half of all its food? I explored this question in my BGE study. We don’t have to invent something completely new. We just need to create a new system based on principles that have been successful for millennia. Very few countries have managed to reduce their public-sector share from over 50% back to below 40%. Today’s tax system is like an addict who needs ever-higher doses until he takes his “golden shot.” In Germany’s case, this could result in a dramatic downgrade of its credit rating as a consequence of the “special funds” credit binge. The world's most economically successful country manages with a public-sector share of 33%: China. Argentina under Milei is on its way there, with a public-sector share of 38%. The cost of doing it yourself versus hiring professionals is also completely different in China. With an average income, a Chinese person can afford about three times as many hours of professional services as a German person.

Where are the discussions?

AI and robots can and will reduce the need for human labor. The birth rate in many countries is well below the level needed to maintain the population. Why isn’t there a broad societal discussion about shaping our future in light of all these problems? Because a small group of extremists is using “cancel culture” and attacks aimed at destroying people's livelihoods to stifle any discussion that doesn't align with their delusions. Poverty for all must not be our future.

Looking for Home Renovation Projects

There are already four projects. They’re spread out quite a bit: Burgenland, the Elbe, Bremen, and Switzerland. I’d be happy to take on more projects. Research on these projects also led to the topic of today’s newsletter: For a renovation project, the estimates were 500 hours of DIY work versus 300 hours of paid labor. For the DIY option, the result was €86 per hour of work in cost savings over the next few decades.

Who are we? Our shareholders

Who are we? Our shareholders.. I ask all existing shareholders—and, hopefully, many new ones soon—to submit contributions like this.

Recruit new shareholders

So far, only 2% of our shareholders have become shareholders themselves by referring new shareholders. That figure should increase significantly in the future. The offer is 10% of the purchased shares for a direct referral and 5% for an assist. I understand the term “assist” in the same way as in soccer: whoever passes the ball to the goal scorer has made an assist.